(Image source from: News24online.com)
On Sunday, Finance Minister Nirmala Sitharaman revealed the Union Budget for 2026. This is her ninth budget speech in a row, and it's the first time a budget was presented on a Sunday. Contrary to what experts predicted, this year's budget did not feature any significant announcements for consumer electronics. Nevertheless, the Finance Minister introduced the India Semiconductor Mission 2.0 and a tax exemption for foreign companies offering cloud services by establishing data centers in India. Here are the five technology announcements from today’s budget. During the budget discussion, Sitharaman talked about the India Semiconductor Mission 2.0. This initiative builds on the original mission aimed at enhancing the semiconductor industry in India, and it will create industry-led research and training centers focused on semiconductors.
Although the Finance Minister did not provide a timeline for launching ISM 2.0, she disclosed that the funding for the Electronics Components Manufacturing Scheme will be raised to Rs. 40,000 crore. It’s worth mentioning that ISM 1.0 was introduced in 2021 with a starting budget of Rs. 76,000 crore. In addition, the minister mentioned plans for special Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu, which will further strengthen the semiconductor field.
Animation, Visual Effects, Gaming and Comics Sector: The Union Budget 2026 gave a significant boost to India's Animation, Visual Effects, Gaming, and Comics (AVGC) industry. Sitharaman highlighted it as a fast-growing sector that is expected to need two million workers by 2030. To back this expanding creative field, the Finance Minister declared the establishment of the Indian Institute of Creative Technologies. This will be set up in Mumbai and help create AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges.
Finance Minister @nsitharaman Ji is presenting the Union Budget in Parliament. https://t.co/QJ3sUV6FC6
— Narendra Modi (@narendramodi) February 1, 2026
Tax Holiday for Foreign Cloud Providers: In a major move for international cloud service providers like Amazon, Google, and Microsoft, Sitharaman announced a tax exemption for any foreign firm that sets up a local data center to provide cloud services in India. Furthermore, the government mentioned a safe harbour of 15 percent on costs if the entity providing data services from India is related to the foreign company.
AI Tool for Farmers: Sitharaman is also aiming to empower farmers with new technology. During the budget discussion, she stated that farmers and those involved in agriculture would benefit from a multilingual artificial intelligence (AI) chatbot designed to assist them in their farming activities.
Exemptions on Customs Duty: Several consumer technology and commercial items received exemptions from customs duty. The Finance Minister proposed eliminating basic customs duties on specific parts for microwave ovens, raw materials for making aviation components, imports for nuclear power projects until 2035, and sodium antimonate for producing solar glass.
